Tuesday, September 10, 2019
Median U.S. Household Income Showed No Growth
According to statistics released by the Census Bureau, Median Household Income for 2018 was flat at $63,179 after three consecutive years of growth. A potential reason the author gives for why income growth hasn't been as strong as expected is that this 10 year expansion period has created one of the tightest labor markets in recent history. Some other reasons include that employers are holding down wages by using technology and also that unions, which push for worker pay raises, are declining steadily.
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This flat rate could be an indication that Trump's incentives to increase economic growth were not successful. However, another important factor to consider is with the economy near full employment the demand for labor is less and therefore the price of labor-wages, has not seen an increase. I would say that although this may be a negative indicator, median income is not a reflection of all other indicators that are performing well in the economy.
ReplyDeleteAs Ramsha said, with the economy nearing full employment, there is less of a demand for labor. The unions that push for worker pay to raise will most likely not be as influential due to the lack of demand for workers. People who get the jobs will simply want to keep the job instead of push for higher wages.
ReplyDeleteI saw an article recently that mentioned that there are jobs being introduced to the market, however they are temporary jobs. I wonder if "temporary" jobs are keeping the unemployment rate as low as it is currently.
there also could be an issue with the inflation causing this issue. since the inflation rate is so low, people may be comfortable with what they are making and not really striving to increase their salary.
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